Muthoot Fincorp Gold Loan

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Overview Of Muthoot Fincorp Gold Loan

Muthoot Fincorp is a leading financial institution in India that provides gold loans to its customers at competitive rates. The loan amount is based on the existing gold value within the market space. Depending on the gold value and loan tenure, the borrower loan amount can range from several thousand to crore.

The USP of the gold loan lies in its quick loan disposal which could be within a few hours of the loan application. Another great feature of Muthoot Fincorp gold loan is lower interest rates and processing fees. Like every financial institution, the Muthoot Fincorp gold loan has its pros and cons. This article will walk you through the customer reviews and experience of applying for a Muthoot Fincorp gold loan.

Pros Of Muthoot Fincorp Gold Loan

• Quick loan disposal

The financial institution is noted for its prompt gold loan disposal for its customers. This is especially ideal for people requiring urgent funds for personal or business purposes for a shorter tenure. The application for the gold loan on Muthoot Fin Corp is also hassle-free and involves minimal steps.

The loan applicant does not have to present a long trail of documentation, and therefore, the gold loan can be sanctioned within a few hours, depending on the company policies. Another USP of the gold scheme is that customers can get loans sanctioned for smaller amounts starting from 10,000 and above.

• Accessibility

Muthoot Fin Corp offers great accessibility owing to numerous branches spread throughout the country. Customers have the convenience of contacting any branch for their financial needs. The company also provides professionals to help evaluate the value of gold for fair loan amount payment.

• Transparent Business Dealing

This is a consensus of customer reviews found online and company website. The company follows ethical and transparent business dealings thereby leading to maximum customer satisfaction. The gold provided by the customer is also stored in vaulted lockers along with insurance for safeguarding purposes.

• Plethora Of Gold Loan Scheme

Another great feature of Muthoot Fincorp is that the company offers a myriad of gold loan scheme options for its customers. These schemes are designed to help cater diverse fund needs of the customer. These schemes include lower interest rates, flexible repayment options, etc.

• Numerous Repayment Option

Numerous repayment options allow loan applications to draw funds as per their needs. The company provides several repayment options like bullet payment, overdraft facility, monthly payment, etc. These repayment options allow customers to make repayments depending on their financial status.

Cons For Muthoot Fincorp Gold Loan

• Processing Fee

Several other financial companies offer gold loans in the market space that charge less processing fees compared to Muthoot Fincorp. The company charges up to a 1% processing charge for its gold loan scheme. The high processing fee is a deal breaker for customers who are looking for a higher loan amount as it eats away a good chunk of borrowed funds.

• Penalty charges

Another pain point of Muthoot Fincorp Gold Loan is the higher penalty charges for non-repayment of loan interest. The company charges high interest rates on hefty loan amounts with longer tenure. Muthoot Fincorp also increases the interest rate on failed repayment which further increases the financial burden on the borrower. The company can also auction the pledged gold on multiple missed repayments.

• Inflated Interest Rate

Customers have flagged the company for charging atrocious interest rates for longer-tenure loans. The company charges a 24% interest rate for loan amounts with longer periods. Customers have to pay huge interest rates for longer duration resulting in customers looking for other financial company options within the market space.

• Lacking Customer Support

The customer support offered by the company leaves a lot to be desirable. Several customers are seen reporting complaints against the company's lack of customer service. There are people lodging complaints owing to long- waiting time for loan processing, uncaring staff, etc. However, the review is a mixed bag as others have received timely services depending on the location and branch chosen.

To sum up, the Muthoot Fincorp Gold loan can be a good option for short-term loans. Loan applicants looking for prompt loan disposal with minimum paperwork can opt for the gold loan scheme from the company. However, comparing the loan interest, processing fee, and penalty charges for longer-duration loan terms with other financial institutions would be a smart option.

Muthoot Fincorp is no doubt a reputable and trustworthy institution for loan applications. The company has years of experience in the field and has designed loan schemes to cater to people from all different walks of life. The loan applicant must understand their loan requirement, repayment options and hidden charges before investing in the Muthoot Fincorp Gold Loan scheme to make the most of the deal.